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The literature on the influence of political and policy-related uncertainties on financial aspects has gained an impetus in the last two decades. This study adds to the existing literature by reviewing the impact of political uncertainty on initial public offerings (IPOs). We aim to provide a...
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I find that U.S. IPO prospectus disclosure exhibits significant correlation with first day underpricing, consistent … with theories of underpricing as caused by informational asymmetry. In particular, a 1 standard deviation increase in … positive prospectus disclosure is associated with almost a third reduction in first day underpricing. More disclosure also has …
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, high-reputation underwriters, and government involvement diminishes the influence of EPU on underpricing, while the effect …
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